Herbal Medicine Market Segmentation Based on Decision tree Algorithm

Market segmentation is the start point of executing targeted marketing strategy. This study aims to determine fit dimensions and appropriate specifications for the segmentation of herbal medicines market in order to provide production and market departments with fit strategies by identifying the profile of the market customers and recognizing their differences in the identified indices. This is an applied study in terms of objective and a survey-analytical cross-sectional study in terms of method. Data was collected with questionnaire. The population of study consists of the end users of different herbal medicines in Iran. Regarding the unlimited population of study, sample size was limited to 460 users selected from active pharmacies located in different regions of Tehran using stratified sampling method. Decision Tree Algorithm was used for data analysis. According to the results obtained in different clusters, each cluster differs with others in terms of the selected characteristics. Therefore, a fit strategy for each cluster should be formulated and executed in order to simultaneously attribute value to both customers and market.

Keywords:

Decision Tree Algorithm , market segmentation , Herbal medicines